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Buyer Beware -- Of the Association
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Do your homework before signing with an association, however. Explore the building or neighborhood and talk to the community manager to assess whether the rules will adversely affect your lifestyle.
"See if anyone else is doing what you want to do. If you don't see any RVs, it's a pretty good guess the homeowners association isn't going to allow RVs," Kosena said.
Potential conflicts include restrictions on:
¿ The size, type and number of pets. "We do have one client who has a scale in the manager's office to weigh a pet. They don't want big dogs," Pearlstein said.
¿ Exterior antennas, clotheslines, flags, fence types and paint colors.
¿ Running a home-based business, including restrictions on parking commercial vehicles.
Next, read the association documents, or covenants. "You think you're buying a home, but really, in addition to that, you are entering into a contract, and it's a very elaborate one," said Peter Dunbar, a lawyer in Tallahassee.
Ask what the monthly dues cover, whether the association raised dues substantially in the past and, if so, why. Ask about additional charges, such as move-in fees.
Inquire about the size of the reserve fund. Some states, including California and Florida, require associations to follow a formula for such funds, but in other states, there is no rule for how much is enough, Pearlstein said. At the least, ensure that there is enough of a reserve to cover future costs of major maintenance. Consider talking to a real estate lawyer if you're uncertain.
Ask when the association last commissioned a reserve study, which is designed to ensure that it is putting aside enough money to cover major expenses ahead.
Request to see the minutes from recent meetings of the association's board of directors and a copy of the association's most recent financial statement. "If they don't have one," Dunbar said, "that's a red flag immediately."
If you find it difficult to obtain these documents before you buy, make your signing of the contract contingent on the review of certain documents so you can back out if those documents prove worrisome.
